INVISIO Communications Conference Call | October 28, 2019 | CEO Lars - - PowerPoint PPT Presentation

INVISIO Communications

Conference Call | October 28, 2019 | CEO Lars Højgård Hansen

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Agenda

• CEO Lars Højgård Hansen comments Q3, 2019
• Q&A
• Financial performance in further detail

Q3 2019: New agreements are milestones in INVISIO’s development

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• Strong sales in the quarter and record sales for the nine-month period.
• Order intake was SEK 95.0 million (39.3)
• Increased costs related to growth initiatives and headcount growth.
• The order book at the close of the quarter was SEK 82.0 million (82.3).

January – September in short:

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INVISIO shows steady long-term growth

COMPANY CONFIDENTIAL 5

• Steady long-term growth despite quarterly fluctuations

in both sales and order intake.

20 40 60 80 100 120 140 160 50 100 150 200 250 300 350 400 450 Act Sales Sales R12M

Sales R12M and actual Sales (MSEK)

Act Sales Sales R12M 20 40 60 80 100 120 140 160 180 200

Order intake (MSEK)

Order intake

U.S. Marine Corps choose INVISIO

Importan ant events nts durin ing the the quarte ter U.S. Marine Corps selects INVISIO for their Hearing Enhancement Program.

• First order of SEK 43 million received.
• Potential between 7,000 and 65,000 users.
• Follow-up orders are expected.

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U.S. Marine Corps photo by Cpl. Brennan Photo disclaimer: "The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement."

COMPANY CONFIDENTIAL

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U.S. DoD chooses INVISIO

October 2 2019 INVISIO has been awarded a five-year IDIQ (Indefinite Delivery, Indefinite Quantity) contract from the U.S. Department of Defense for communication and hearing protection systems.

• The maximum order value, over the five-year time period, is USD 30 million,

equivalent to approximately SEK 290 million.

• The contract replaces the first one received in 2017 that expired earlier this year.

COMPANY CONFIDENTIAL

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Belgian army chooses INVISIO

Photo from the Belgium Army Facebook page

October 2 2019 INVISIO in partnership with Thales Belgium, received an order for communication and hearing protection systems from a new customer the Belgian army.

• Order value approx. SEK 30 million for the first order.
• Expecting a first follow-up order shortly of SEK 20 million.
• Long-term potential for further orders is considerable.

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Framework agreements and a first order from Swedish Police

October 2 2019 The Swedish police signs framework agreements with INVISIO regarding communication equipment with active hearing protection.

• Potential value is between SEK 50 and 75 million over the contract period.
• Agreements valid for two years with the possibility of extending for another

two years. No volume is guaranteed.

• First order worth 19 MSEK.

“It is our intention to make this solution available to as many police officers as possible who are at risk of exposure to high noise levels.” Per Olov Olsson, Assignment Leader at the Swedish Police

INVISIO clear market leader in the U.S.

Product development and marketing initiatives that have been gradually increasing since 2017 are bearing fruit. In 2019 alone we won the following customers and programs: 1. INVISIO was assigned GSA status in January by the U.S. General Services Administration. 2. The U.S. Special Operations Command (USSOCOM) chose INVISIO in May as supplier to the CASL program. 3. U.S. Marine Corps selects INVISIO for their Hearing Enhancement Program in August. 4. Awarded a five-year IDIQ agreement (indefinite delivery, indefinite quantity) by the American Department of Defense, in October. The framework agreement replaces the first, which was signed in 2017 and expired earlier this year.

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The Intercom system broadens the INVISIO offer

Intercom w will c ill contrib ibute to t the growth jo journey:

• Intercom is a ground-breaking new product for use in vehicles, boats and helicopters,

that connects users of INVISIO’s personal system to the vehicle’s other communication systems.

• Intercom broadens the offer to the defense and security industry. The new category

will make a material contribution to the company’s long-term growth.

• Marketing of Intercom has been gradually intensified in 2019. Great interest at

industry conferences in both London and Washington.

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In light of the company’s sound growth in 2019, with new agreements and completed initiatives to develop our offer and market presence, INVISIO is now entering a very interesting period. As we are also seeing growing defense budgets and increased investment in civil security, we have every reason to take a positive view of INVISIO’s continued growth journey.

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Q&A

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Thank you!

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Financial performance in further detail

Q3 2019

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Condensed consolidated income statement and consolidated statement of comprehensive income

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Condensed consolidated statement of financial position

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Condensed consolidated statement of cash flow

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